Racing district increases Speedway rent
By JOHN BOZZO
Staff Writer
DAYTONA BEACH --Talk about rent increases.
Daytona International Speedway officials agreed Monday to pay almost 5,000 percent more to lease the public land where the racetrack was built.
And they're "satisfied" with the deal.
Annual rent payments will rise from a token $10,000 -- established to help get the racetrack built in 1957 -- to $500,000 immediately. Rent increases will be built in every five years.
"It's payin' up time," said Fred Thellman, chairman of the Daytona Beach Racing and Recreational Facilities Commission, which serves as landlord for the Speedway.
But Thellman didn't want to push the racing giant too hard because Speedway officials paid to build the internationally renowned racing facility and pay for property taxes on the improvements.
International Speedway Corp. officials proposed a flat annual rent of $500,000 last August even though their rent would have doubled to $20,000 next year and stayed unchanged until 2032 under the previous lease.
Thellman's proposal to add automatic increases so the annual rent would average $750,000 after 48 years prevailed.
Speedway officials were willing to pay more in order to extend the lease for the 447 acres fronting International Speedway Boulevard through 2054.
"I totally support what they did originally to get the Speedway built here," said Bud Asher, a racing district commissioner who also served 20 years as a city commissioner and mayor in Daytona Beach. "But we're here to serve the public and get the most we can for recreation."
John Graham, International Speedway Corp. vice president, said the longer lease will help justify a proposed $100 million investment in a Speedplex office, an office-commercial project on the north side of International Speedway Boulevard, across from the Speedway.
He stopped short of saying he was "happy" with the new rent.
"We're satisfied," Graham said. "It does appear to be a fair arrangement for both sides."
Speedway officials won some concessions in the lease before agreeing to the higher rent.
Under the terms of the original lease, racing district commissioners held the option to buy out the Speedway for 10 times gross revenues. They dropped that option Monday and also agreed to give the Speedway the first chance to negotiate with Volusia County when the racing district's lease of the land expires in 2054. The racing district subleases to the Speedway.
Another feature of the original lease allowed the racing district to stage fundraising activities up to 90 days of the year at the Speedway, if facilities are available.
Under new terms, the district only will use the Speedway 22 days each year, 11 per event, to continue sponsoring its popular car shows twice a year at the Speedway. A requirement to get the Speedway's permission for those auto-related events will be dropped. Plus, the racing district can use the Speedway for another eight days every year, but must get the Speedway's approval.
An independent agency, the racing district has used proceeds from the car shows to provide more than $2.4 million in grants for recreation projects in the east Volusia County area since 1990. A final vote on the lease agreement is scheduled for March 28, when the commissioners meet again.
By JOHN BOZZO
Staff Writer
DAYTONA BEACH --Talk about rent increases.
Daytona International Speedway officials agreed Monday to pay almost 5,000 percent more to lease the public land where the racetrack was built.
And they're "satisfied" with the deal.
Annual rent payments will rise from a token $10,000 -- established to help get the racetrack built in 1957 -- to $500,000 immediately. Rent increases will be built in every five years.
"It's payin' up time," said Fred Thellman, chairman of the Daytona Beach Racing and Recreational Facilities Commission, which serves as landlord for the Speedway.
But Thellman didn't want to push the racing giant too hard because Speedway officials paid to build the internationally renowned racing facility and pay for property taxes on the improvements.
International Speedway Corp. officials proposed a flat annual rent of $500,000 last August even though their rent would have doubled to $20,000 next year and stayed unchanged until 2032 under the previous lease.
Thellman's proposal to add automatic increases so the annual rent would average $750,000 after 48 years prevailed.
Speedway officials were willing to pay more in order to extend the lease for the 447 acres fronting International Speedway Boulevard through 2054.
"I totally support what they did originally to get the Speedway built here," said Bud Asher, a racing district commissioner who also served 20 years as a city commissioner and mayor in Daytona Beach. "But we're here to serve the public and get the most we can for recreation."
John Graham, International Speedway Corp. vice president, said the longer lease will help justify a proposed $100 million investment in a Speedplex office, an office-commercial project on the north side of International Speedway Boulevard, across from the Speedway.
He stopped short of saying he was "happy" with the new rent.
"We're satisfied," Graham said. "It does appear to be a fair arrangement for both sides."
Speedway officials won some concessions in the lease before agreeing to the higher rent.
Under the terms of the original lease, racing district commissioners held the option to buy out the Speedway for 10 times gross revenues. They dropped that option Monday and also agreed to give the Speedway the first chance to negotiate with Volusia County when the racing district's lease of the land expires in 2054. The racing district subleases to the Speedway.
Another feature of the original lease allowed the racing district to stage fundraising activities up to 90 days of the year at the Speedway, if facilities are available.
Under new terms, the district only will use the Speedway 22 days each year, 11 per event, to continue sponsoring its popular car shows twice a year at the Speedway. A requirement to get the Speedway's permission for those auto-related events will be dropped. Plus, the racing district can use the Speedway for another eight days every year, but must get the Speedway's approval.
An independent agency, the racing district has used proceeds from the car shows to provide more than $2.4 million in grants for recreation projects in the east Volusia County area since 1990. A final vote on the lease agreement is scheduled for March 28, when the commissioners meet again.
